Singapore’s Otto Marine seeks consents to amend 7% notes’ covenants

By Angela McDaniels

Tacoma, Wash., Nov. 30 – Otto Marine Ltd. subsidiary Otto Marine Services Pte. Ltd. began a consent solicitation for its S$70 million of 7% fixed-rate notes due 2016, according to a company announcement.

The issuer is seeking consent to lower the minimum consolidated total equity required under the notes’ covenants to $200 million from $250 million and increase the maximum ratio of consolidated net borrowings to consolidated total equity to 2.85 times from 2.5 times.

In asking for the changes, the company cited difficult market conditions due to volatile oil prices, persistent downward revisions in daily charter and utilization rates in the offshore marine industry and an influx of newbuild vessels.

The notice did not disclose the date of the meeting at which bondholders will vote on the proposal, but it did say that noteholders may collect copies of the consent solicitation statement through Dec. 14.

DBS Bank Ltd. and Overseas-Chinese Bank Corp. Ltd. are the solicitation agents.

Singapore-based Otto Marine is a shipping-focused offshore marine group that operates offshore support vessels.

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